It’s not looking good at star analyst Meredith Whitney’s hedge fund, Kenbelle Capital, according to Bloomberg’s Max Abelson.
Since her fund started trading in November 2013, it has lost two top executives, and a major investor is asking for his money back.
Whitney became the talk of Wall Street during the financial crisis, when she correctly called that Citigroup would be forced to cut its dividend. After that she predicted that the US was facing a deluge of municipal-bond defaults. That never happened.
The launch of her hedge fund was met with a mix of excitement and mocking. She opened with $US50 million in cash and targeted returns of 12% to 17%. Instead she lost 4.5%, according to Abelson.
Executives Brittani Caetano, the fund’s CEO, and Stephen Schwartz, an SAC Capital vet and cofounder, have left the firm. It is a fund connected to BlueCrest Capital, which is asking for its money back.